2022
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ujjivan Small Finance Bank
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Equitas Small Finance Bank
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Utkarsh Small Finance Bank
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Janalakshmi Small Finance Bank
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Detailed explanation-1: -The RBI no-objection comes with conditions. The merger is being effected to comply with the RBI norms on small finance banks , mandating the promoter to reduce the stake in the subsidiary to 40 per cent within five years of commencement of operations by the SFB (Small Finance Bank).
Detailed explanation-2: -The Reserve Bank of India has conveyed its ‘no-objection’ to the amalgamation of Equitas Holdings Ltd (EHL) with Equitas Small Finance Bank (ESFBL).
Detailed explanation-3: -The bank already got two approvals: (a) a “no-objection” from the RBI in May 2022 and (b) a shareholder approval in September 2022. The bank had disclosed a revised share swap ratio of 100:231 for the reverse merger.
Detailed explanation-4: -For the reverse-merger, the bank had announced a revised share swap ratio of 100:231.
Detailed explanation-5: -After receiving license from the Reserve Bank of India (RBI) on 30 June 2016, Equitas Small Finance bank began banking on 5 September 2016. With effect from 4 February 2017, Equitas became a scheduled bank. However, the company failed to meet the RBI’s mandate of listing within three years of starting operations.